Surplus on Wind Up

(1) No surplus may be paid out of a pension fund that is to be wound up without the prior consent of the Supervisor. up. 46 (2) In consenting to the payment of surplus out of a pension fund, the Supervisor shall consider the factors prescribed in the (3) If a pension plan does not provide for payment of surplus to the employer on the wind up of the pension plan, the pension plan shall be construed to require that surplus shall be distributed in a fair and reasonable manner on the wind up of the pension plan among members, former members, retired members and other persons entitled to payments under the pension plan on the date of the wind up. (4) A written agreement among the following persons may provide for payment of surplus to the employer if the surplus is to be paid to the employer on the wind up of the pension plan– (a) the employer; (b) at least two-thirds of the active members of the pension plan (and, for this purpose, a registered trade union that represents or represented members on the date of the wind up may agree on behalf of those members); and (c) the number which is considered appropriate in the circumstances by the Supervisor of former members and other persons who are entitled to payments under the pension plan as of the date of the wind up. (5) If the surplus is to be paid to the employer on the wind up of the pension plan and no agreement under sub-section (4) has been reached, the Supervisor may refer the matter to binding arbitration. (6) An arbitrator may be appointed by an agreement entered into by the persons who would be authorized to make an agreement under sub-section (4) and, if no agreement to appoint 47 an arbitrator is reached within 60 days after the Supervisor has referred the matter to arbitration, the Supervisor shall appoint an arbitrator. (7) When making an arbitration award, the arbitrator may consider the factors that he or she considers appropriate, including such factors as may be prescribed. Surplus, Asset Transfers and Conversions